Bitcoin is both the most-widely used crypto-currency in the world and the probably most misunderstood. Ask a person on the street about it and they will either claim to love it, hate it, or know nothing about it.
Most people, however, will tell you one of the many half-truths they’ve heard about Bitcoins from either the mainstream media or a friend. Because this currency is gaining in importance around the world, it is about time we debunked common Bitcoin myths.
1) Bitcoins Have No Value
To some people, cryptocurrencies are just another fading fad that has no intrinsic value. Such views result mostly from an unawareness of the benefits and wide acceptance of Bitcoins. They probably compare the Bitcoin with the dollar that is more widely accepted. Despite the dollar’s wide acceptance, Bitcoins do everything it can do – maybe more.
As the demand for the dollar fades around the world, that of the Bitcoin is, in fact, rising.
2) Nothing Backs the Bitcoin
This myth stems from the assumption that the Bitcoin is different from other world currencies, such as the Dollar or Euro. It is not. Like major currencies, Bitcoins are backed by the laws of demand and supply.
Anyway, the last time the Dollar was backed by any physical thing of value was in 1970, when it was under the traditional Gold Standard. In 1971, it moved from the standard for good.
3) Bitcoin Mining is not Eco-friendly.
An article in the Bloomberg Magazine recently claimed that Bitcoin mining leaves a large carbon footprint. The article asserted that the complexities of mining use more processing power from giant server farms. These farms, in turn, consume a vast amount of electricity.
Proponents of Bitcoin mining, such as the mining company Genesis Mining, cite the advantages of the crypto-currency as a trade-off. To them, the virtual value created by practice off-sets any real-world value it uses. They also claim that the amount of energy consumed by Bitcoin mining is less than that consumed by industries associated with the printing and distribution of hard currency.
4) Bitcoin is the Currency of Choice for Cyber-Criminals
Criminals use many forms of payment to finance their illegal activities. However, the anonymous nature of a crypto-currency makes it particularly attractive and open to abuse by criminal elements in society.
That some elements, such as the now-closed Silk Road website, prefer Bitcoins should not be an indictment of the currency as a whole. Keep in mind that it is the criminal activity that is illegal, not the currency.
5) Bitcoins are Not Secure
Militaries, governments, and banks all over the world use cryptography to secure their data, as does Bitcoin. The cryptography used by the Bitcoin Blockchain is so secure that it is yet to be breached seven years into its history. You can find out more about the security of cryptocurrency on the popular website Unblock.
Of the many erroneous views about Bitcoin flying about, these five are the most common and persistent. None of them are true.
This is a sponsored press release and does not necessarily reflect the opinions or views held by any employees of The Merkle. This is not investment, trading, or gambling advice. Always conduct your own independent research.